The latest annual Turning Digital study from Rome-based ITMedia Consulting reveals that traditional TV continues to hold its ground in Italy and Spain, even as streaming services gain popularity. However, in Europe and the US, VoD platforms are still seeing significant growth.
The TV market in Western Europe saw marginal growth of 1 per cent in 2023, reaching a total value of €76.4 billion. When adjusted for inflation of 6.4 per cent, the market’s real growth rate declined by 5.4 per cent.
Despite a temporary uptick in 2024 due to major sporting events, advertising revenues in the linear TV model continue to decline. Streaming and AVoD models are growing, but not enough to offset the losses.
The impact of streaming and online advertising varies across European countries. The UK, Germany and France have seen significant growth in online TV market shares, surpassing 25 per cent of total TV advertising. Italy and Spain, however, have shown more resilience, with market shares remaining marginal, demonstrating the strength of traditional broadcasters like Mediaset and Rai.
Pay-TV is the primary revenue source for European TV, accounting for €36.7 billion in 2023, a 5 per cent increase from the previous year. However, this growth is driven by a significant shift from traditional pay-TV services to SVoD platforms such as Netflix. VoD now represents 51 per cent of total pay-TV revenue, a significant increase from 2019.
Despite a temporary boost from major sporting events, TV advertising in Europe has declined overall by 2.9 per cent in 2023 to €24.4 billion, returning to pre-pandemic levels, with Italy being an exception (+2.1 per cent). This suggests a shift in advertising investments toward digital platforms.
Source link : https://advanced-television.com/2024/10/21/report-traditional-tv-hold-steady-in-spain-italy/
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Publish date : 2024-10-21 08:55:00
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